Ukraine’s UAH government bonds inclusion in JP Morgan GBI EM Index will begin from March 31st  2022

On October 12, the JP Morgan Global Index Research reported that Ukrainian government bonds will be eligible for the GBI-EM GD beginning March 31st, 2022 with an estimated weight of 0.12%. The initial inclusion will feature one index-eligible bond – the 15.84% Feb 2025s – in all three GBI-EM series.

It is reported that the foreign participation rate in the local market has significantly increased since the link to Clearstream was established in 2019, and non-resident holdings have steadily risen to more than 10% of total debt. After gathering market feedback, the Global Index Research team reported that the majority of the investors pointed out that market liquidity has improved over the last two years but noted that the onshore account set up process can take several months. Index inclusion will begin from March 31st, 2022 to provide sufficient time for investors to establish market access and onshore accounts as necessary.

“We welcome the good news from the JP Morgan Global Index Research. The inclusion of UAH government bonds in the JP Morgan GBI EM Index will help us to achieve the goals of our Medium-Term Debt Strategy. We would like to have more UAH instruments eligible to the index, therefore we aim to issue all UAH bonds with a maturity of more than 4 years in the size sufficient for index inclusion”, - commented Yuriy Butsa, Government Commissioner for Public Debt Management.